PUBLIC NOTICE OF RECEIVERSHIP SALE: 3si Systems, LLC

NOTICE OF RECEIVERSHIP SALE – 3si Systems, LLC

1. Executive Summary. William A. Brandt, Jr. of Development Specialists, Inc., Receiver of 3si Systems, LLC (the “Receiver”), is selling all of the technology and business assets associated with 3si Systems’ hospital operating room Voice Command System (the “Voice Command System Assets”).

2. Key Deadlines:

Bid Deadline: November 12, 2018

Auction Date: November 15, 2018

Sale Hearing: November 16, 2018

3. The Voice Command System. The Voice Command System is a mobile workflow management system that leverages advances in speech recognition technology to support human performance in the operating room. The Voice Command System Assets include, but are not limited to, prototype equipment and computers, software and code, domestic and international patents and patent applications, and domestic and international distribution rights.

4. The Auction Procedures Order. The Receiver is selling the Voice Command System Assets pursuant to the terms of the Auction Procedures Order entered on September 21, 2018, in the case captioned Wesley Holdings Ltd. v. 3si Systems, LLC, et al., pending in the United States District Court for the Southern District of New York as case number 1:17-cv-3362-KPF.

For a complete recitation of the court-approved auction procedures, see the Auction Procedures Order (ECF Dkt. No. 183), or you may request a copy of the Order from the Receiver.

5. The Stalking Horse. 3si Systems’ senior secured creditor is the designated stalking horse bidder for the Voice Command System Assets under the terms of the Auction Procedures Order.

The District Court has approved the stalking horse bidder’s initial bid of $2,692,717.74, plus interest and costs accruing after July 27, 2018, for the Voice Command System Assets.

6. Competing Bids. A party interested in submitting a competing bid must submit a cash bid that is at least $250,000 more than the stalking horse bidder’s approved initial bid, by the Bid Deadline below. To submit a qualified bid, a party must comply with the terms of the Auction Procedures Order. Prospective bidders must execute a confidentiality agreement before obtaining additional information.

7. Qualified Competing Bids. The Bid Deadline is November 12, 2018. If the Receiver receives a qualified competing bid by the Bid Deadline, then the Receiver will conduct an Auction on November 15, 2018, at 1:00 p.m. (prevailing Eastern Time), at the law offices of the Receiver’s counsel, Rosen & Associates, P.C., 747 Third Avenue, New York, New York 10017. All interested prospective purchasers are invited to become Qualified Bidders. Only Qualified Bidders will be permitted to attend the auction. The Court will hold a sale hearing on November 16, 2018.

8. As-is, Where-is. All of the Voice Command System Assets will be sold pursuant to such transfer documents as the Receiver deems necessary or appropriate, on an “as is, where is” basis and without recourse, representations, or warranties of any kind or nature whatsoever, including, without limitation, any representation or warranty of merchantability or fitness for a particular purpose.

10. About DSI. DSI is a leading provider of management consulting and financial advisory services to companies in need of operational improvements, balance sheet restructuring or turnaround management. As one of the first turnaround firms in the U.S., DSI has expanded from its headquarters in Chicago to include a significant national footprint with offices in New York, Los Angeles, San Francisco, South Florida, Wilmington and Columbus, Ohio. Internationally, DSI has an office in London.

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